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To: Bill Harmond who wrote (83850)	11/10/1999 12:21:00 PM
From: Lizzie Tudor	Respond to of 164684

PO proceeds to build fulfillment capacity to outsource to smaller e-commerce companies. Fedex does this, its called "merge ship". Basically, its a hub and spoke distribution process where the host company ships to a fedex regional wh and his suppliers also ship there - Fedex "merges" the product and ships to the customer. If you believe in that direction for business its clear why b2b is so hot. The host company needs to recognize revenue and returns, but they never see the inventory because its at fedex. A transaction needs to be setup to communicate the supplier part# and customer info back to the host. I actually always recommend against merge-ship or any outsourced fulfillment because it means the company loses too much control. But, if you're e-mattress, and somebody orders a product from tennessee, and the Beautyrest factory is also in Tennessee - well then it makes to sense to receive at your Ca warehouse!